Need good workers? Be a good company
Alright, see our merchandise:
Hiring and managing employees is one of the hardest tasks of company owners. An employee-employer relationship is significantly different than a social one. You will spend many hours every day together. You could develop a friendship or, depending on the day, be a helper, teacher, adviser, and an authority figure.
But employers shouldn't forget that the connection is all about business. We will need to divorce our feelings when needed.
But employers shouldn't forget that the connection is all about business.
A frequent conflict is when an employee wishes to leave. What if owners do if they find an employee is searching for another job? I've seen several forum posts where business owners respond badly. Some feel betrayed. But that is never advisable. How an owner reacts will be noticed by other workers and will probably impact the business.
My response is always positive. I do everything I can to help somebody depart.
Attempt to help
Consider It. Employees must do what's best for them, not your organization. So if they believe it's time to proceed, trying to prevent them is rarely a great idea. Helping them can bring substantial benefits to you and your organization. An employee who wishes to leave will often be distracted and have lower productivity. It can drag others down.
When an employee has scheduled a meeting with another company, I'd rather he tell me about it and book time off, rather than calling in sick. Following the meeting, I try to ask how it went, who he saw, and how he feels.
If I attempt to help, maybe it'll earn the goodwill of the departing employee. The other workers will observe and (hopefully) think that I am a fantastic boss. Most of all, I will know early on that I want a replacement.
I could potentially involve the soon-to-depart worker in drawing a project description. I might even encourage it from inside. Nobody will understand better what the job involves and the sort of person who can best do it compared to the current job holder or me. I can use this to my benefit.
Additionally, knowing which company is contemplating my worker could offer invaluable business intelligence, such as what the organization is planning or useful recruiting ideas.
As a company owner, I expect dedication and loyalty from all of my workers. But loyalty is a two-way road. To obtain loyalty, I need to be loyal.
There will inevitably come a time when we as companies realize it is within an employee's best interest to proceed. Can you hold them back or help them develop?
Retail businesses depend on workers. Employees interact directly with our clients via the telephone, in person, or online -- or indirectly through the purchase or warehouse sections. Very good employees -- that go the extra mile -- can make or break a company. And a fantastic company can attract and maintain good workers .
3 Inventory KPIs to Drive Ecommerce Profits
Inventory Turnover
Inventory turnover is the cost of goods sold divided by the average stock by interval.
Cost of Goods Sold ÷ Average Inventory for Stage
Say the cost of goods sold is $100,000 annually, and the average stock for the year is $10,000. Inventory turnover is therefore 10, as in:
$100,000 ÷ $10,000 = 10
There is no wrong or right answer for this KPI. It is usually by industry. Some companies turn stock six times annually, some three, some 20. But high actors tend to turn their stock more often than others in their own category.
Use the stock turnover KPI to make better decisions on pricing, production programs, buying from suppliers, and promotion. If turnover is too high, such as 20 times annually, that may indicate strong sales that risk being out of stock. Or you may be pricing your products too low.
Conversely, if turnover is too low, you may be stocking the incorrect products, or your merchandising or pricing might be a problem. Monitor stock turnover at least Rs -- monthly is better. Compare results to previous periods.
Carrying Costs
The second vital inventory KPI is carrying costs, which can be secondary expenses like warehousing, storage, fulfillment and accounting personnel, and interest expense. Additionally, it includes"leakage," such as theft, breakage, and spoilage.
Many retailers calculate carrying costs as the complete inventory cost divided by four.
Complete Inventory Cost ÷ 4
If your yearly total inventory cost is $100,000, your carrying costs are probably somewhere around $25,000.
Opportunity Costs
Perhaps the main stock KPI is opportunity costs -- the cost of creating a poor inventory investment. Maybe you've established a new product that's a flop. Or perhaps you purchased too much slow-moving item, which restricts your ability to purchase high-demand goods.
Carrying costs can be high. They are generally due to subjective conclusions.
To make better choices, consider SKU rationalization reports. There are probably dozens of approaches to rationalize inventory. 1 method is to split your inventory into three sections.
- Fast-moving/high-profit Solutions. This might be a small part of your existing inventory.
- Slow-moving/high-profit Solutions. Maybe most of your stock.
- Slow-moving/low-profit Solutions. A nice percentage of inventory.
Then, use those sections for better choices. Boost the purchases of fast-moving/high-profit products. Monitor and maintain slow-moving/high-profit products. And reduce slow-moving/low-profit items as quickly as possible.
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